Owens-Illinois Inc.'s (OI) fourth-quarter loss widened, though
on an adjusted basis, earnings rose but missed analysts' views, as
the glass-container maker's bottom line was hurt by a $329 million
charge related to its expropriated Venezuelan operations.
The company had said its fourth-quarter results would likely be
hurt by developments in Venezuela, as President Hugo Chavez in
October announced the appropriation of the company's local
affiliate, accusing it of causing environmental damage and
exploiting its workers. The company said in October the Venezuelan
government was set to take control of operations there, and on
Wednesday, O-I said it was still negotiating with the country with
respect to "certain aspects of the expropriation, including
compensation."
Chairman and Chief Executive Al Stroucken also on Wednesday said
the company expects "improved financial performance and free cash
flow generation in 2011. Shipments should increase due to organic
growth and benefits from recent acquisitions."
Meanwhile, the company--which makes containers for beverages in
more than 22 countries--has seen falling revenue and margins of
late, with demand up globally for wine, food and spirits but
sluggish for beer bottles in more mature markets.
Owens-Illinois reported a loss of $412 million, or $2.52 a
share, from a loss of $159 million, or 95 cents a share, a year
earlier. Excluding discontinued operations such as those in
Venezuela as well as items such as an adjustment of the company's
asbestos-related liability, earnings rose to 45 cents from 43
cents.
Revenue edged 1% lower to $1.73 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 47 cents on $1.76 billion in revenue.
Gross margin rose to 17.8% from 16.7%.
Shares closed at $32.09 and were inactive after hours. As of the
close, the stock had risen 8.2% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;